Okura Holdings, a Japanese pachinko firm, experienced a significant decline in their earnings for the fiscal year concluding on June 30, 2021. They generated 5.4 billion yen, which equates to approximately 36 million pounds or 41.7 million euros. This represented a 23.1% decrease compared to the previous year.
The primary driver of this downturn was the COVID-19 pandemic, which had a substantial negative impact on their operations. The majority of their revenue stemmed from their pachinko and pachislot parlors, which contributed 4.91 billion yen. They also generated income from property rentals, vending machines, and other ventures.
Their expenditures also witnessed a reduction, falling by 52.6% to 6.6 billion yen. This decrease was primarily attributed to lower spending on pachinko and pachislot machines, operating their halls, and depreciation. They also curtailed spending on utilities, administration, and advertising.
Despite these cost-cutting measures, they still incurred a net loss of 81 million yen for the year, a stark contrast to the 6.59 billion yen profit they achieved in 2020. They also faced increased financial expenses.
After accounting for taxes, their total loss amounted to 577 million yen, an improvement compared to the 6.36 billion yen loss they recorded in 2020.
Ola Holdings has announced that the Japanese pachinko sector has been experiencing a downturn due to rivalry from other forms of amusement and efforts to minimize gambling aspects within the games.
The industry has been facing challenges, particularly since the onset of the COVID-19 pandemic in Japan in January 2020, which could expedite the decline.
The number of patrons at Ola’s pachinko parlors has plummeted since the temporary closure of all entertainment venues in April and May 2020, as Japanese prefectures attempted to curb the spread of COVID-19.
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